India should remove the limits on corporates’ external commercial borrowings, according to recommendations of a committee which submitted its report to the government on Friday, television channels reported.

The committee headed by M S Sahoo, a former member of the Indian market regulator, was given the task to review the rules on external commercial borrowings.

The panel was also in favour of removing end-use restrictions, and recommended that every borrower should hedge a part of their borrowing, according to the television channels.

Currently the limit for each Indian company to raise funds through ECB is $750 million in a financial year barring in segments such as hotel, hospital and software sectors.

Companies also have to limit their borrowing cost at 350 basis points over six-month LIBOR for three to five year maturity and at 500 bps over LIBOR for more than five years, according to the Reserve Bank of India.